TORONTO — AlarmForce Industries issued its 2016 financial report and restated results for previous periods on Tuesday following a review of its prior handling of service cancellations for some of its customers.
The Toronto-based company (TSX:AF), which provides home alarm services in various North American markets, says it had $56.4 million in revenue and a $500,000 or four cents per share net loss in fiscal 2016.
That compares with a restated $55.2 million in revenue and $4.42 million or 38 cents per share of net income in fiscal 2015.
AlarmForce originally reported $56.1 million in revenue and $4.98 million or 43 cents per share of net income for fiscal 2015.
The company also restated its results for the first and second quarters of its 2016 financial year.
The restatements came after prospective buyers of the company noticed during their due diligence that some of AlarmForce’s residential contracts didn’t give customers the right to cancel payments and services, as required in some jurisdictions.
AlarmForce estimates that it spent $1.2 million in fiscal 2016 on reviewing its revenue recognition and other internal practices, and that additional costs will be incurred in fiscal 2017.
“With the challenges of the review process and restatements firmly behind us, we will continue to focus on implementing the company’s new strategic plan and build our momentum as the leading home security and automation company in the Canadian market,” Graham Badun, president and CEO of AlarmForce, said in a statement.